If you have been reading my blog for a while you might have noticed I can be a little bit of a “growth hacker” – A brutally honest one at that. Today I am going to talk about why paying Facebook more than half of a Cent is way too much to pay, how it affects profitability and why you need to not compare your CPE (Cost Per Engagement) to any other businesses.
Before I get into it though I have a few laughable thoughts I’d like to share…
When you search around the internet, you see how people who get 0.30USD CPE call themselves marketing experts – What’s most painful about this is that in February/March of 2015 I myself worked at a digital agency where we got excited when we got CPE down to about 0.05… LMAO!
How much times have changed!
Now to the main idea – Profitability!
If you are reading this and have any idea what I am talking about then you must understand where I was going with my “never compare your CPE to anyone else’s”. Essentially, an American company in the same niche as you may not have a problem paying as high as 0.30 for engagement but you should never be willing to do the same. Reason for this is that whatever traffic/engagement they might be getting is light years ahead of yours in terms of quality, buyer intent and retention.
My point is simple, the average white guy living in Chicago with a decent income clicking on my product is more likely to buy if he is interested than the average Nigerian. No offence to anyone, I am Nigerian too but the truth hurts doesn’t it. An average Nigerian will first look around for free ways to get the same thing done – or at the least a less expensive method.
When you think about that you begin to realize why tolerating such high CPE is ridiculous for a Nigerian business. Your Digital Agency is either cheating you or they are legitimately just as clueless as you and they are taking your money to make mistakes you could have made all by yourself!
Now for the content peddlers, bloggers and publishers…. I did my research and as far as I could find, most Nigerian blogs/bloggers think entertainment is the way. They all want to copy paste from Linda Ikeji or better still, copy and “refine” content from international entertainment sites and somehow get popular doing this.
Like Falz will say “IT WII NOH WORK!!!”
No, I’m not being negative, it’s just a statement of fact. Say you go on and pay Facebook to grow your audience at a ridiculous CPL (Cost Per Like). Then after you are done and you feel like you have arrived your posts organic reach never exceeds 10% and that is for the days when you were extremely lucky. Judging by the sheer amount of content you have to put out to even be a relevant entertainment blog in Nigeria you will just be blowing money fast! Rick Ross Lomo!
Let me not get started on the fact that your Adsense CTR will be incredibly low and your CPC may be as low as 0.07. So essentially you are forever funding a business that is supposed to put money in your pocket. Alright O.B.O – Baddest! Well done!
I am not going to dwell, and I am not going to beat around the bush. To crack profitability when your income stream depends on CPC or CPM advertising networks is incredibly difficult – because you are Nigerian. It gets even more annoying when you think about click banks like taboola and mgID.
You only begin to break even when you CPC goes all the way down to like 0.005 or less… If you can hit it as low as 0.0005 in fact I am happy for you – You are the real MVP. Incredibly unlikely with the kind of content you are peddling but if you do it I am very happy for you.
Essentially you can begin to see that the average digital agency is either cheating you or just as clueless as you are – so why bother?
Next time an agency quotes you 0.20 CPL to grow Facebook page or…. In fact any agency that want’s to grow your Facebook page to drive you sales should be fired!
I can’t decide which kind of agency is worse, the one that pays exorbitant amounts for audience building or the kind that tells you “You need a blog to get traffic to your website”. You are essentially telling me I can’t market my content if I am not a blogger who can put out quality content or I can’t afford to pay one. No, I am not going to compromise and allow your agency post duplicate content for the blog you forced me to create. I’d rather not!
And for everyone asking “What is his CPE?” “Why does he think he has the right to expose Digital Marketing Agencies like this?” – On a good day I get CPE as low as 0.0001… Yes, that was 3 zeros not 2.
I am a terrorist! Deal with it!
PS – Use my contact page if you would like to talk about what you just read. Or don’t.